Tax season is in full swing and we want to make sure you keep your hard earned money by taking advantage of all of the tax deductions and credits you deserve. Our guest blogger, Joan Ferreira of blogfinanzas.net is here to share tax credits you don’t want to miss.
As parents, we work hard to provide our children with the best education, a roof to sleep under and food to eat every day. This valiant effort is not overlooked by the Internal Revenue Service (IRS). Here are some tax credits that are available when you prepare your tax return, that help you with the financial support of your home and children.
1. Earned Income Tax Credit (EITC)
The earned income tax credit is one of the most helpful for our families, our communities and taxpayers. If you worked and had an annual income of less than $47,955, you may be eligible for a credit of up to $6,269 if you have 3 or more kids.
According to IRS, more than $60 billion was granted to more than 26 million taxpayers for their 2011 returns. However, the IRS confirms that many people who qualify do not actually claim it. When you use TurboTax you are asked simple questions about you and TurboTax will help you figure out if you are eligible for this and other tax credits based on your answers.
2. Child and Dependent Care Credit
Another credit you can claim is for the expenses associated with the care of your little ones. If you have children under age of 13 and you pay someone else to take care of them, you could qualify. This credit is designed to help recover up to 35% of dependent care costs up to $3,000 for one child and $6,000 for two or more.
Just like the Earned Income Tax Credit, one of the requirements to claim this credit is that you were working or were looking for work. The person who takes care of your children cannot be someone that you claim as dependent (for example, an older child or your dependent parents). If you qualify, TurboTax will take care of asking you the necessary questions as you prepare your tax return, to ensure you receive the credit amount that you deserve.
3. Child Tax Credit
With the child tax credit you could receive up to $1,000 for each qualifying child. There are some requirements that you need to meet, such as their age, your relationship to the child, financial support and his or her immigration status.
The child must be under the age of 17 and a dependent on your taxes; receive more than half of his or her financial support from you; and have lived with you for more than half the year. The child must also be a citizen or resident of the United States. The credit is gradually decreased if you have a modified adjusted gross income of more than $75,000 (or $110,000, if married and filing jointly).
These three credits will help to reduce the taxes you owe or even grant you a tax refund, which could be allocated towards your children’s education, or to start your family’s financial plan. Whatever your financial goal may be, you can count on TurboTax to help you get the credits and deductions that you deserve for the investment you have made in your family.